Graymark expands its medium term single tenant program – partners with major Private Equity Fund for initial $77M acquisition
San Francisco, CA, May 2017 – Graymark Capital, Inc., in partnership with a major real estate private equity fund, has acquired two creative office/R & D portfolios for a total price of $77.0 million. The two portfolios, which consist of 8 single-tenant buildings, are located in Cupertino, CA and Hillsboro, OR, and are leased to a strong roster of credit tenants including Apple, Nike, IBM and Columbia Sportswear.
10300-10460 Bubb Road, Cupertino CA is a four property, 110,000 SF portfolio, located in one of the tightest office markets in the country, and is 100%-leased to Apple, Inc. Located approximately 3 miles from Apple’s new corporate headquarters, and in the heart of Silicon Valley, the buildings are single-story and are improved by highly attractive creative office buildouts.
AmberGlen Business Center, located in Hillsboro, Oregon, is a 4-property 210,000 SF portfolio that is 100%-leased to Nike (50%), Columbia Sportswear (13%), IBM (12%) and a regional engineering firm. The project sits in the core of the Silicon Forest area of suburban Portland, which is home to numerous technology and lifestyle companies and is the fastest growing market in the Portland MSA. Located 4 miles from Nike’s corporate headquarters and 12 miles from downtown Portland, the 4 single-story buildings feature exposed ceilings and polished concrete floors, and attractive creative office buildouts.
The projects are being purchased under Graymark’s Medium Term Net Lease (“MTNL”) Program, which focuses on well-located infill office/R&D/industrial assets leased to creditworthy tenants under 3 to 7-year lease terms.
“These property purchases represent a continuation of Graymark’s strategy of investing in high quality west coast markets that appeal to technology and lifestyle tenants because of strong demographics and a highly-educated workforce”, stated Brian Hecktman, Graymark Capital’s Founder and CEO. “The Bubb Road asset is Graymark’s tenth investment in Silicon Valley and the AmberGlen asset represents our first foray into the Pacific Northwest, which is a target market for us in 2017 and beyond.”
Added Jeff Hoppen, Managing Director and CFO, “these investments were a perfect fit for Graymark’s MTNL program due to excellent infill locations in tight submarkets, strength of tenancy and cash flow and below-market rents. We are well-capitalized and aggressively pursuing similar transactions between $25 and $250 million throughout the western U.S.”
About Graymark Capital
Graymark Capital, Inc. is a real estate investment firm located in San Francisco, California that invests in commercial properties throughout the West Coast. The company has acquired 1.5 million SF of institutional quality property valued at $475 million since 2012, in the Bay Area, San Diego, Los Angeles, Hawaii and the Pacific Northwest. Founded by CEO Brian Hecktman, with Managing Director/CFO Jeff Hoppen and VP of Acquisitions Rick Lafranchi, the company focuses on opportunities where it can create significant value by capitalizing on the team’s collective experience from over $2 billion of real estate investment and development over the past 20 years.